Under a little known clause in the Budget 2015 small print this could become a reality for landlords.
Delving deeper into the Budget Red Book the Residential Landlords Association (RLA) has discovered plans to make subletting in residential tenancies the norm.
[blockquote align=’right’]The measures on sub-letting are a nightmare in the making…[/blockquote]
It will be illegal for private sector tenancy agreements to include clauses that prevent the sub-letting of the property.
On page 51 of the Budget Red Book, under the title “support for the sharing economy”, the budget small print said the government will:
“make it easier for individuals to sub-let a room through its intention to legislate to prevent the use of clauses in private fixed-term residential tenancy agreements that expressly rule out sub-letting or otherwise sharing space on a short-term basis, and consider extending this prohibition to statutory periodic tenancies.”
Referring to the measure as “a nightmare in the making” Alan Ward continued:
“The measures on sub-letting are a nightmare in the making and smack of ‘back of the fag packet’ policy making.
“Key questions remained unanswered such as who will be responsible for a property if the tenant sub-letting leaves the house but the tenant they are sub-letting to stays?
“Similarly, given the Government wants landlords to check the immigration status of their tenants, who would be responsible for checking the status where sub-letting occurs?
“Whilst the RLA awaits further detail on this measure, it is difficult to see landlords supporting it.”
Failure to Extend Support for Energy Improvements:
The RLA is also concerned about the Government’s failure in the 2015 Budget to extend support for energy improvements in private rented housing.
Energy and landlord organisations had called upon the Chancellor to extend the Landlord’s Energy Savings Allowance which is due to end next month. The allowance has played a key role in supporting landlords to invest in improving the energy efficiency of their properties.
The failure to continue the allowance means improvements will now only be financed on the back of tenants through their energy bills as contained within the Green Deal.
Commenting, RLA Chairman, Alan Ward said:
“It is disappointing that Ministers have failed to listen to campaigners on this issue.
“Ministers have talked the talk on improving the energy efficiency of the nation’s rented housing stock but today they have pulled the rug from under the feet of landlords and tenants.”
- The RLA represents almost 20,000 private sector residential landlords in England and Wales.
- Details of the Landlord’s Energy Savings Allowance can be found here
- Page 51 of the Budget Red Book outlines measures to “make it easier for individuals to sub-let a room” through the Government’s intention “to legislate to prevent the use of clauses in private fixed-term residential tenancy agreements that expressly rule out sub-letting or otherwise sharing space on a short-term basis, and consider extending this prohibition to statutory periodic tenancies.”
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